Created by the people’s Bank of China laboratory for the study of digital currencies, in partnership with the Central branch of the Central Bank of the country in Shenzhen, China construction Bank, Chinese commercial Bank, Ping An Bank and Standard Chartered Bank launched in the test mode of trade-financial blockchain-based platform for the development of the blockchain ecosystem and carrying out cross-border payments in Guangdong, Hong Kong and Dawan district in Macau. In the first phase of testing on the platform being tested the procedures for the financing of supply chains to SMEs.
According to the Vice-President for operations of the local Bank, Ping An Bank Chunhua Xu (Xu Honghui), it is assumed that the introduction of the blockchain system will allow the enterprises of small and medium businesses to significantly reduce transaction costs of trade financing. In addition, he believes that the more data, including information on loans, legal issues, etc., will come to the platform, the safer it will be blockchain system. In the future, the platform can be integrated with government surveillance systems and management of logistics information – to align the “information asymmetry” on the internal and external level.
We will remind that in June the people’s Bank of China came to the decision on the transfer of paper checks to electronic form by using blockchain technology and use of smart contracts to prevent financial fraud and reduce the cost of printing. And at the end of July, Agricultural Bank of China through a subsidiary in Guizhou province issued using the blockchain technology a loan of $300 thousand for the purchase of agricultural land. According to representatives of the state Bank, the process involved nodes other commercial banks, the local branch of people’s Bank of China and the Ministry of land and resources of China.